Beware of the many pension scams out there.
HMRC and The Pensions Regulator (TPR) publish leaflets to warn people of the consequences of pension liberation scams.
HMRC are advising that individuals with pension savings continue to be targeted by unscrupulous companies encouraging them to access their pension savings early.
There are many offers to look out for. But above all be very careful before transferring any of your hard earned pension savings!
What to look out for
Some scams encourage people to move their pension fund. This could be either in the form of a personal loan, cash incentives or a one-off pension investment.
The revised set of leaflets highlight the serious downsides of these pension scams. There is guidance on what trustees and scheme members can do to reduce the risk of becoming involved in one of these scams.
Pension savers involved in these pension liberation scams also face significant tax consequences.
Before moving your money, you must consider the tax impact of releasing your pension funds early.
So if you are thinking of moving your money, first of all please talk to a tax expert to maximise your pension income.